Frequently Asked Questions (FAQs)

 

  

1.      Availability of land

a) Near Delhi, Jaipur Ahmedabad.

Land near Delhi is available in Bhiwadi, Khuskhera, Chopanki (Bhiwadi), Neemrana and Sotanala Industrial Areas (Shahjahanpur). Land near Jaipur is available in Sitapura, EPIP, Bagru Ext. Ph-II (Jaipur-Rural), Bagrana, Chitroli & Bassi (Jaipur-South)etc.. Land is also available  near Ahmedabad in Growth Centre Abu Road, Bichhiwara (Banswara) etc.

 

b) Other Industrial Areas.

         For details please click here

 

2.      Rate of Allotment Land

The rate  of allotment of land varies from industrial area to industrial area.

 

      For industrial area wise details Please Click here

 

3.       Terms of Payment

25% d.c. (cost of plot) alongwith security money (equal to 1% of d.c. but minimum Rs. 2500/-) shall be deposited at the time of submission of application. Balance payment of 75% D.C alongwith other charges like economic rent, service charges etc. shall be deposited within 60 days of allotment of land.

 

As option the balance payment of 75% Development Charges may be deposited in 19 quarterly installments  with 13% rate of interest.

 

4.       Special Land Concessions

The following concessions are available

S.No

Category

Land rebate

a.

On IT Software and hardware projects and IT institutes

upto 60% in selected IT Zones

b.

On Bio-technology and Bio-informatics projects

Upto 60% in specially designated zones.

c.

On Electronic projects/ Solar energy units

20% upto 4000 sqm.

d.

SC/ST

50% upto 2000 sqm

e.

Physical Handicapped and disabled persons

15% upto 2000 sqm

f.

Ex-serviceman/ War widow

25% upto 2000 sqm

g.

Women entrepreneurs

10% upto  2000 sqm

h.

Large projects & Educational institutions (excluding schools)

A rebate of 10% in land rate in case of allotment of plots measuring 10,000 sqm shall be given. If area is more than 10,000 sqm. then additional rebate of 0.5% per 1,000 sqm shall be given. Maximum rebate shall be 25% if the allottee opts for a plot of 40,000 sqm. or above. If the allottee of industrial plot measuring 20,000 sqm. or plot for educational institution measuring 40,000 sqm. or more envisages an investment of Rs. 50 crores or more in 5 years then, an additional rebate of 10% shall be given.

 

For setting up Power Projects the limit of investment mentioned above would be  Rs.25 crores instead of Rs. 50 crores.

                                                                       

5.   Project ideas

      RIICO has identified  about 214 potential medium and large projects in various sectors like IT and electronics, textiles, automobiles, engineering, agro, chemical, ceramic, minerals, tourism etc.  For list of identified projects please click here.

 

6.   Availability of project reports, project briefs.

      Data Bank of RIICO is maintaining a shelf of various projects reports and brief project profiles on potential medium and large projects. Project reports are available on various sectors like agro, ceramic, chemicals, IT, electronics, engineering, minerals, textiles, tourism etc.

 

7.  For which purpose, RIICO sanctions loan ?

 

RIICO sanctions loan for setting up of new Industrial units in the state of Rajasthan, expansion of the existing facilities, diversification, modernisation, etc. Loan is also granted for industrial, commercial and social infrastructure projects like Hotels, Hospitals, Educational Institutions. Entertainment centres, Multiplexes, BOT road and other projects, etc.

 

8.  What is the required promoters contributions?

 

Minimum promoters contribution is 30% of the project cost subject to the condition that debt equity ratio does not exceed 1:5:1.

 

9.  What is the current lending rate?

 

It is 12% p.a. after considering rebate of 1.5% p.a. for timely repayment in disbursed rate of interest (13.5%). Further rebate of 1% is extended to Good Borrowers having net worth of Rs. 100 lacs and tern over of Rs. 100 lacs subject to satisfactory record of payment and other conditions.

 

10. Is there any incentive for timely payment of due-Interest/Principal?

 

        Yes, 1.5% p.a. rebate is given for timely payment.

 

11. What is the range of investment/ loan considered by RIICO in a new project?

 

        RIICO considers loan for projects having investment of more than Rs. 100 lacs.

 

12. What security is required against loan?

 

Normally, first charge is taken on the fixed assets of the project. However, depending on risk perception of the Corporation about the project the loan is also secured by collateral security.

 

13. What time is taken in sanction of loan by RIICO?

 

        2 months subject to submission of complete information in time.

 

14. What is the repayment period of loan?

 

The repayment period depends on cash flow of the project. It is generally 7 years including one year moratorium.

 

 

15.   Does RIICO finance IT Software projects?

 

Yes, RIICO is providing term loan assistance to IT projects at par with other projects. There may be requirement of collateral security depending upon the tangible assets available in the project

 

For high growth oriented IT and other technology based projects RIICO has floating a venture capital fund.

 

16. What type of schemes are there to suit different financial needs of the project?

 

      The various schemes are:

a)      Term loan for project.

b)     Term loan under Equipment finance scheme.

c)     Working capital term loan.

d)     Asset credit scheme.

e)      Flexi loan scheme for hotels & hospitals.

f)      Term loan for commercial/residential complexes

 

17. Major concessions and facilities available to industries.

¾    Concessions in land rates for various categories like IT, electronics, physical handicapped, SC/ST, women, ex-serviceman etc.

¾    Interest rebate of 1.5% on timely quarterly repayment by RIICO.

¾    DG Set subsidy for SSI units where plant and machinery does not exceeds Rs.60 lacs @25% of the purchase value of DG set subject to a maximum of Rs.2.5 lacs.

 

¾    Income Tax benefit

      New Industries in the following backward districts of Rajasthan have been exempted from Income Tax, as details given below.

 

      Among 12 Districts, five are in category A and seven in Category B (see the list below). New Industries in Category "A" will get cent per cent exemption for the first five assessment years; and 25 per cent exemption for the next five assessment years. It will be 30 per cent in the case of companies.

 

      While the new industries in Category "B" districts will get a cent per cent exemption for three assessment years; and  25 per cent exemption for the next five assessment years. It will be 30 per cent in case of companies.

 

  

      Category ; A

 

      1.Jalore, 2. Barmer, 3. Jaisalmer, 4. Churu, 5.Banswara,

 

      Category : B

 

      1.Dugarpur, 2. Dholpur, 3.Sawaimadhopur, 4.Tonk, 5. Nagaur, 6.Jhalawar, 7.Sikar.

 

 

¾    No Octroi

 

¾    Incentives for ISO 9000, quality certification.

 

18. Availability of raw material

 

      State has sufficient availability of raw material for various projects in sectors like Agro, Engineering, Cement, Textile, IT, Electronics etc.

 

 

19. Do State Government extend a customized package of incentives ?

 

      Yes, customized packages would be offered to premier projects with an investment of Rs. 150 crore & above and regular employment of 500 persons or other special projects in the thrust sectors, as per the State Government industrial policy.

 

20. Does RIICO provide land to Service Sector?

 

      Yes, RIICO also provides land to Service Sector like hospitals, warehousing, Educational Institutions etc.

 

If land measuring 10,000 sqm. or more in normal industrial areas (total land allotted in area is less than 90%) is required for setting-up of warehousing, inland container depots, rebate in land rates are given ranging from 5% to 12.5% depending upon size of plot and category of area.

 

In slow-moving industrial areas, where less than 50% area has been sold out in more than five years, 10% rebate in rate of development charges is allowed for allotment of 10,000 sqm. size plot. Additional rebate @ 0.5% per 1000 sqm. In case of plot larger then 10000 sqm is also permitted. Total rebate shall be limited to 25%.

 

Land for nursing homes can be allotted at par with industry in dormant and slow-moving industrial areas. In normal industrial areas, rate shall be 1.5 times of industrial rate.

 

Land for hotel is allotted through auction only.

 

 

21. What is Power tariff for Industries in the State ?

 

      *Tariff is given below

 

Sr. No.

Category

Fixed charges

Energy charges Paise/unit

a.

Small Industry

Rs. 30/HP/Month

344

b.

Medium Industry

Rs. 45/HP/Month or

Rs. 75/KVA/Month

372

c.

Large Industry

Rs. 90/KVA/Month of BD

401

      * Note:- Subject to change

 

22. Is special package of incentives available to IT?

 Yes, Land upto 40% of prevailing rate in selected IT Zone may be offered to IT. IT units in IT Park are also exempted from stamp duty.